Matador Resources Company Announces 2013 Capital Budget

December 06, 2012 07:00 AM Eastern Time

DALLAS--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company"), an
independent energy company currently focused on the oil and liquids rich
portion of the Eagle Ford shale play in South Texas, today announced its
2013 capital budget and drilling plan, which include the following:

2013 capital budget of $310 million, including $260 million for
drilling and completions, $25 million for pipelines and facilities,
and $25 million for land and seismic data

2013 guidance of 1.6 to 1.8 million barrels of oil production, up
about 40% from 2012

2013 guidance of 11 to 12 Bcf of natural gas production, down about
8% from 2012

2013 oil and natural gas revenue guidance of $200 to $220 million,
up about 40% from expected $145 to $155 million in 2012

2013 Adjusted EBITDA guidance of $140 to $160 million, up about 33%
from expected 2012 Adjusted EBITDA of $110 to $115 million

The Company anticipates financing the 2013 capital budget through
internal cash flows plus growth in borrowings under its previously
announced bank facility

Matador Analyst Day

This morning Matador will be hosting an Analyst Day at 10:00 a.m.
Central Time at the Company’s headquarters in Dallas, Texas. Management
will host a live conference call to provide its 2013 operational plan,
capital budget and forecasts, plus an update on its current operations.

Joseph Wm. Foran, Matador’s Chairman, President and CEO, commented, “Our
2013 capital budget will allow us to continue our successful development
program in our Eagle Ford acreage in South Texas, which will include
about 80% of our drilling budget. We will also begin exploration of our
Delaware Basin acreage in West Texas and Southeastern New Mexico. In the
meantime, we will continue to monitor developments in the natural gas
market, as our important acreage in the Tier 1 area of the Haynesville
should generate very attractive drilling opportunities with modestly
higher gas prices. This plan allows us to grow production and EBITDA
meaningfully while spending slightly less money than we did in 2013, all
anticipated to be financed through our own cash flows and increased
borrowings under our bank facility. ”

A replay of the Analyst Day presentation will be made available through
Friday, January 4, 2012 via dial-in and webcast. Domestic participants
should dial (888) 286-8010 and international participants should dial
(617) 801-6888. The replay dial-in participant passcode is 26549459. A
link to the replay webcast will be available through the Company’s
website at www.matadorresources.com
on the Presentations & Webcasts page under the Investors tab.

A copy of the Company’s Analyst Day Presentation is available through
the Company’s website at www.matadorresources.com
on the Presentations & Webcasts page under the Investors tab.

About Matador Resources Company

Matador is an independent energy company engaged in the exploration,
development, production and acquisition of oil and natural gas resources
in the United States, with a particular emphasis on oil and natural gas
shale plays and other unconventional resource plays. Its current
operations are located primarily in the Eagle Ford shale play in South
Texas and the Haynesville shale play in Northwest Louisiana and East
Texas.

This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
"Forward-looking statements" are statements related to future, not past,
events. Forward-looking statements are based on current expectations and
include any statement that does not directly relate to a current or
historical fact. In this context, forward-looking statements often
address expected future business and financial performance, and often
contain words such as "could," "believe," "would," "anticipate,"
"intend," "estimate," "expect," "may," "should," "continue," "plan,"
"predict," "potential," "project" and similar expressions that are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Actual
results and future events could differ materially from those anticipated
in such statements, and such forward-looking statements may not prove to
be accurate. These forward-looking statements involve certain risks and
uncertainties, including, but not limited to, the following risks
related to financial and operational performance: general economic
conditions; our ability to execute our business plan, including whether
our drilling program is successful; changes in oil, natural gas and
natural gas liquids prices and the demand for oil, natural gas and
natural gas liquids; ability to replace reserves and efficiently develop
current reserves; costs of operations; delays and other difficulties
related to producing oil, natural gas and natural gas liquids; ability
to make acquisitions on economically acceptable terms; availability of
sufficient capital to execute our business plan, including from future
cash flows, increases in borrowing base and otherwise; weather and
environmental concerns; and other important factors which could cause
actual results to differ materially from those anticipated or implied in
the forward-looking statements. For further discussions of risks and
uncertainties, you should refer to Matador's SEC filings, including the
"Risk Factors" section of Matador's Annual Report on Form 10-K for the
year ended December 31, 2011. Matador undertakes no obligation and does
not intend to update these forward-looking statements to reflect events
or circumstances occurring after this press release, except as required
by law. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their
entirety by this cautionary statement.

Adjusted EBITDA

The Company defines Adjusted EBITDA as earnings before interest expense,
income taxes, depletion, depreciation and amortization, accretion of
asset retirement obligations, property impairments, unrealized
derivative gains and losses, certain other non-cash items and non-cash
stock-based compensation expense, including stock option and grant
expense and restricted stock and restricted stock units expense and net
gain or loss on asset sales and inventory impairment. Adjusted EBITDA is
not a measure of net income or cash flows as determined by GAAP.
Adjusted EBITDA is a supplemental non-GAAP financial measure that is
used by management and external users of consolidated financial
statements, such as industry analysts, investors, lenders and rating
agencies. “GAAP” means Generally Accepted Accounting Principles in the
United States of America.

Adjusted EBITDA should not be considered an alternative to, or more
meaningful than, net income or cash flows from operating activities as
determined in accordance with GAAP or as an indicator of the Company’s
operating performance or liquidity. Certain items excluded from Adjusted
EBITDA are significant components of understanding and assessing a
company’s financial performance, such as a company’s cost of capital and
tax structure. Adjusted EBITDA may not be comparable to similarly titled
measures of another company because all companies may not calculate
Adjusted EBITDA in the same manner. References in this press release to
Adjusted EBITDA are forward-looking or prospective in nature, and not
based on historical fact. The Company could not provide reconciliations
of Adjusted EBITDA to the GAAP financial measures of net income (loss)
and net cash provided by operating activities, respectively, without
undue hardship because the Adjusted EBITDA numbers included in this
press release are estimations. In addition, it would be difficult for us
to present a detailed reconciliation on account of many unknown
variables for the reconciling items.

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